Investors lose WH Smith pay vote

WH SMITH'S controversial boardroom pay deals today won the backing of shareholders, but a third either opposed or abstained from the vote.

The relatively high protest vote puts the group firmly in the fat-cat file of companies given a rough ride by shareholders over pay.

Small shareholders angrily questioned the group over the pay deals for new chief executive Kate Swann, former chief-turned temporary chairman Richard Handover and sacked UK retail head Beverly Hodson.

Swann's £2m package, which includes a £220,000 guaranteed 'golden hello' bonus, was the most controversial.

Shareholder John Cruickshank asked: 'Guaranteed bonus? What is a bonus that is guaranteed regardless of success?'

Handover said Swann's package had to be lucrative to lure her away from her previous employer, Argos.

Another shareholder questioned Handover's position: 'I was not in favour of you becoming chief executive in the first place. I am even more unhappy that you have moved on to the chairmanship on the same salary as before...for £400,000, I do not think you are worth it.'

Handover said a search for his successor had been launched today, adding his appointment was an interim measure after the unexpected resignation of Martin Taylor.

WH Smith announced plans to sell its Asia-Pacific business, much of which it bought only two years ago.